SLT’s operating profit rises by 42% | Daily News


SLT’s operating profit rises by 42%

Revenue records Rs. 42.6 bn in 1H- 2019

The SLT Group announced its financial results for the first half of the year 2019 with a remarkable growth of 42% YoY in Operating Profit to reach Rs. 4.5 billion(Bn).

The growth momentum was driven by better management of costs and increase of revenue by 7.9% YoY to Rs. 42.6 Bn with significant contributions from its key business portfolios of fixed and mobile broadband services, Global business, Career domestic, Enterprise intelligent business solutions, PEO TV services, National Backbone Services and Digital Services. The Group comprises of nine subsidiaries including its mobile arm Mobitel (Pvt) Ltd. The Gross Profit was recorded at Rs. 18.8 Bn with a YoY growth of 13%.

Despite the strong competition in the market and pressure on the country’s economy and public security during the first half of 2019, a strong EBITDA margin was recorded at 33.4% in comparison to 30.9% the year before. The EBITDA reported at Rs. 14.2 Bn. The Profit After Tax (PAT) rose to Rs. 3.5 Bn with a YoY growth of 23%. The Group was able to reduce FOREX losses to Rs. 15 Mn from Rs. 550 million(Mn) in the first half of 2018 as a result of rupee stabilization, effective hedging strategies and reduction of foreign currency denominated loans which positively contributed to the PAT growth. The PAT margin grew to 8.2% for the period under review from 7.2% during the corresponding period in 2018. SLT Group paid a total of Rs.13.9 Bn of Direct & Indirect taxes and other contributions to the Government of Sri Lanka during the six months ended 30th June 2019.

The SLT Group embarked on a transformational journey towards a Digital Service Provider and has continually invested in strategically important digital infrastructure which is vital for the transformation of the country towards a SMART Sri Lanka. SLT was licensed to build the National Backbone Network with high speed fiber infrastructure.

Kumarasinghe Sirisena, the Group Chairman stated that “The Group with its nine subsidiaries continues its transformational journey to become the nation’s preferred digital lifestyle provider. SLT also inaugurated the ‘National Digital Roadmap (NDR)’ for a SMART Sri Lanka and the ‘Limitless You’ programme to uplift and enrich our valuable stakeholders who are vital for our journey. Going ahead with its diversification strategy, the Group recently launched its innovative transport service under the brand name ‘SLT Muve’ to avail the opportunities in the external environment through its subsidiary, SLT Digital Services (Pvt) Ltd. I strongly believe 2019 and the years ahead will be very encouraging in with us pursuing opportunities for positive growth”.

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